Bitcoin Price is Abnormal, Says Bank of Japan Governor

News | December 26, 2017 By:

The recent splurge in bitcoin price is undoubtedly abnormal, said Bank of Japan Governor Haruhiko Kuroda.

Bitcoin prices have risen more than 1,700 percent since the start of the year. The most popular cryptocurrency has also climbed almost 80 percent in December alone. The price, however, is showing a dip in the past few days. Last week, the cryptocurrency lost almost 20 percent of its value. It is currently trading today at $14,789 per coin.

“It’s not my place to say, but if you look at the charts, it’s clear that the jump (in prices) is abnormal,” Kuroda reportedly said during a media conference following the central bank’s monetary policy meeting.

He stated that unlike conventional currencies, bitcoin is not controlled by a central bank or government and does not have the same function as currency as a means of payment or settlement. He added that the cryptocurrency is being traded for investment or speculative purposes.

In April of this year, the government of Japan amended its fund settlement law to allow recognition of bitcoin as a legal payment method. With that approval, the Japanese Financial Services Agency (FSA) was required to ensure the registration of cryptocurrency exchanges in the country. The FSA has so far approved 15 cryptocurrency exchanges, including Zaif Exchange, QUOINE, bitFlyer, Tokyo Bitcoin Exchange Co. Ltd, Bit Arg Exchange Tokyo Co. Ltd, FTT Corporation, Xtheta Corporation, and others.